According to data captured in Charles Schwab’s most recent Trading Services Sentiment Survey, only 10% of traders say they have a bearish outlook for the next three to six months.
The taper did indeed have a big effect on the bond market, but this effect is just getting started. The 10- and 30-year bond yields could start to trend higher.
The 5-year Treasury is entering a new phase in its existence. The 5-year will have a very hard time of it and will suffer relative to the 30-year.
A regulatory push to make complex securities easier to understand could change how banks disclose risks for exchange-traded notes for the first time since they began trading in 2006.